Estimating the impact of fuel-switching between liquid fuels and electricity under electricity-sector carbon-pricing schemes
Switching from liquid fuels to electricity in the transportation and heating sectors can result in greenhouse gas emissions reductions. These reductions are maximized when electricity-sector carbon emissions are constrained through policy measures. We use a linear optimization, generation expansion/dispatch model to evaluate the impact of increased electricity demand for plug-in electric vehicle charging on the generating portfolio, overall generating fuel mix, and the costs of electricity generation. We apply this model to the PJM Interconnect and ISO-New England Regional Transmission Organization service areas assuming a CO2 pricing scheme that is applied to the electricity sector but does not directly regulate emissions from other sectors. We find that a shift from coal toward natural gas and wind generation is sufficient to achieve a 50% reduction in electricity-sector CO2 emissions while supporting vehicle charging for 25% of the vehicle fleet. The price impacts of these shifts are sensitive to demand side price responsiveness and the capital costs of new wind construction.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Liski, Matti, 2001. "Thin versus Thick CO2 Market," Journal of Environmental Economics and Management, Elsevier, vol. 41(3), pages 295-311, May.
- Ross Morrow, W. & Gallagher, Kelly Sims & Collantes, Gustavo & Lee, Henry, 2010. "Analysis of policies to reduce oil consumption and greenhouse-gas emissions from the US transportation sector," Energy Policy, Elsevier, vol. 38(3), pages 1305-1320, March.
- Luickx, Patrick J. & Helsen, Lieve M. & D'haeseleer, William D., 2008. "Influence of massive heat-pump introduction on the electricity-generation mix and the GHG effect: Comparison between Belgium, France, Germany and The Netherlands," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(8), pages 2140-2158, October.
- Sergey Paltsev & John M. Reilly & Henry D. Jacoby & Angelo C. Gurgel & Gilbert E. Metcalf & Andrei P. Sokolov & Jennifer F. Holak, 2007.
"Assessment of U.S. Cap-and-Trade Proposals,"
NBER Working Papers
13176, National Bureau of Economic Research, Inc.
- DeCarolis, Joseph F. & Keith, David W., 2006. "The economics of large-scale wind power in a carbon constrained world," Energy Policy, Elsevier, vol. 34(4), pages 395-410, March.
- Searchinger, Timothy & Heimlich, Ralph & Houghton, R. A. & Dong, Fengxia & Elobeid, Amani & Fabiosa, Jacinto F. & Tokgoz, Simla & Hayes, Dermot J. & Yu, Hun-Hsiang, 2008. "Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land-Use Change," Staff General Research Papers 12881, Iowa State University, Department of Economics.
- Sioshansi, Ramteen & Fagiani, Riccardo & Marano, Vincenzo, 2010. "Cost and emissions impacts of plug-in hybrid vehicles on the Ohio power system," Energy Policy, Elsevier, vol. 38(11), pages 6703-6712, November.
- Roth, Ian F. & Ambs, Lawrence L., 2004. "Incorporating externalities into a full cost approach to electric power generation life-cycle costing," Energy, Elsevier, vol. 29(12), pages 2125-2144.
- Koomey, Jonathan & Hultman, Nathan E., 2007. "A reactor-level analysis of busbar costs for US nuclear plants, 1970-2005," Energy Policy, Elsevier, vol. 35(11), pages 5630-5642, November.
When requesting a correction, please mention this item's handle: RePEc:eee:soceps:v:47:y:2013:i:2:p:76-88. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.